Titan Wind(SZ:002531) INDUSTRIAL SECURITIES·2024-05-09 03:32Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a positive outlook based on its strategic focus on offshore wind energy and expected growth in profits [5]. Core Views - The company has successfully transitioned from onshore to offshore wind energy, achieving significant revenue in its offshore segment, with a reported revenue of 1.51 billion yuan and a sales volume of 121,600 tons in 2023 [4]. - The company is expected to benefit from the increasing domestic and international demand for offshore wind energy, with projected net profits of 1.36 billion yuan, 1.86 billion yuan, and 2.35 billion yuan for 2024, 2025, and 2026 respectively [5]. - The report highlights improvements in the company's existing business profitability, with a focus on enhancing quality and efficiency [4]. Financial Summary - For 2023, the company reported total revenue of 7.727 billion yuan, a year-on-year increase of 15%, and a net profit attributable to shareholders of 795 million yuan, reflecting a 27% increase [4]. - The gross margin for 2023 was 22.8%, up by 4 percentage points from the previous year, while the net profit margin was 10.1%, an increase of 1 percentage point [4]. - The first quarter of 2024 saw a decline in revenue to 1.054 billion yuan, down 23% year-on-year, with a net profit of 148 million yuan, a decrease of 25% [4]. - The company’s return on equity (ROE) is projected to improve from 8.9% in 2023 to 16.4% by 2026 [3][4].